II Brief Exercise 23-10 For its three investment centers, Crane Company accumulates the following data: I III Sales $1,920,000 $4,013,000 $4,033,000 Controllable margin 1,344,000 2,006,500 3,629,700 Average operating assets 4,903,000 8,021,000 12,010,000 The centers expect the following changes in the next year: (1) increase sales 14%; (II) decrease costs $404,000; (111) decrease average operating assets $534,000. Compute the expected return on investment (ROI) for each center. Assume center I has a controllable margin percentage of 70%. (Round ROI to 1 decimal place, c.g. 1.5%.) II III The expected return on investment % % % Click if you would like to show Work for this question: Open Show Work Brief Exercise 23-08 For the year ending December 31, 2020, Sunland Company accumulates the following data for the Plastics Division which it operates as an investment center: contribution margin-$612,200 budget, $629,685 actual; controllable fixed costs- $299,400 budget, $303,200 actual. Average operating assets for the year were $1,955,000. Prepare a responsibility report for the Plastics Division beginning with contribution margin for the year ending December 31, 2020. (Round ROI to 1 decimal place, e.g. 1.5%.) SUNLAND COMPANY Plastics Division Responsibility Report For the Year Ended December 31, 2020 Difference Favorable Unfavorable Neither Favorable nor Unfavorable Budget Actual $ % % Click if you would like to Show Work for this question: Open Show Work Do It! Review 23-04 a-b (Part Level Submission) The service division of Vaughn Industries reported the following results for 2020. Sales $498,000 Variable costs 298,800 Controllable fixed costs 66,320 Average operating assets 604,000 Management is considering the following independent courses of action in 2021 in order to maximize the return on investment for this division. 1. Reduce average operating assets by $72,480, with no change in controllable margin. 2. Increase sales $86,070, with no change in the contribution margin percentage. (a) Compute the controllable margin and the return on investment for 2020. Controllable margin Return on investment for 2020 %